The Tax Publishers2021 TaxPub(DT) 3556 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
Assessee filed complete names, addresses of share aplicants, confirmatory letters from them, copies of bank statements of both the company as well as share applicants and copies of share application forms, PAN details, bank account statements, audited financial statements and income-tax assessments under section 143(3). Accordingly, all the three conditions as required under section 68, i.e., the identity, creditworthiness of share applicants and genuineness of the transaction were satisfied and no addition was warranted under section 68.
|
Income from undisclosed sources - Addition under section 68 - Receipt of share application money -
Assessee-company received share application money from certain investors. AO treated the same as unexplained credit under section 68 on the ground all companies who had applied for shares in assessee-company were not genuine companies and were jamakharchi companies as evident from the fact that they had received credits in their accounts prior to applying for subscribing to the share capital of assessee-company. Held: Assessee filed complete names, addresses of share aplicants, confirmatory letters from them, copies of bank statements of both the company as well as share applicants and copies of share application forms, PAN details, bank account statements, audited financial statements and income-tax assessments under section 143(3). Accordingly, all the three conditions as required under section 68, i.e., the identity, creditworthiness of share applicants and genuineness of the transaction were satisfied and no addition was warranted under section 68.
Applied:ITO v. Goodpoint Commodeal (P) Ltd. ITA No. 1204/Kol/2015 for assessment year 2012-13 Order, dated 7-6-2019 : 2019 TaxPub(DT) 4459 (Kol-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, KOLKATA BENCH
SUBSCRIBE FOR FULL CONTENT |